Fidelity as a one stop shop

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montee4
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Re: Fidelity as a one stop shop

Post by montee4 » Sun May 19, 2019 12:15 pm

Where do you guys keep your emergency fund? Just in one of their Money Market Funds? Assuming these are safe from any losses?

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msi
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Re: Fidelity as a one stop shop

Post by msi » Sun May 19, 2019 1:36 pm

montee4 wrote:
Sun May 19, 2019 12:15 pm
Where do you guys keep your emergency fund? Just in one of their Money Market Funds? Assuming these are safe from any losses?
SHV, a treasury bill ETF that trades commission-free at Fido.

frequentT
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Re: Fidelity as a one stop shop

Post by frequentT » Sun May 19, 2019 3:13 pm

I have been a Fido client for many years. They are very easy to deal with and continually upgrade their services and products.

They have always been innovative in improving their website and electronic capabilities. It will take you years to discover all of what is available (because the services are deep) 'in general', and self-service on the website. So if you don't see something you need, search around or call them and ask about it is that you need.

The electronic services team is very knowledgeable and can trouble shoot Active Trader Pro or any other products.

I used to keep my bond ladder on an excel sheet that was very labor intensive. I gave Fido requests and suggestions that they build a tool to help their clients; and several years later it became available. If you hold individual bonds give their analysis tool a try.

I am late in posting to this thread so I may have missed some comments comments but here are some features you may like:

*Electronic check images are kept for 10 years

*Bill payment loaded with features and very flexible

*Tax forms are easy to access

*Active Trader Pro is very feature loaded and useful even if you are not an active trader in helping build and manage positions

*New bond offer inventory is deep in USTs and munis: secondary market is good as well, (but don’t go their unless you have experience because of low price transparency)

*Auto transfer tools (between fido accounts) are very useful and flexible

*For security you can make your smart card ATM only if like

*I have a Fido ‘smart account’ dedicated to incoming electronic transfers. This further segregates my other accounts from outsiders. After fund transfer in, I move to my core account. Like wise I have another account dedicated to transfers out, including any PayPal transactions

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sun May 19, 2019 3:23 pm

msi wrote:
Sun May 19, 2019 1:36 pm
montee4 wrote:
Sun May 19, 2019 12:15 pm
Where do you guys keep your emergency fund? Just in one of their Money Market Funds? Assuming these are safe from any losses?
SHV, a treasury bill ETF that trades commission-free at Fido.
Another option would be to auto-roll Treasuries, since Fidelity offers the auto-roll feature. You currently earn about 2.4% on 1-month to 6-month Treasuries, and if you need to sell early you won't take much of a haircut, although Schwab generally has better pricing for quantities under $150K-$300K face value. So about 20 basis points more than SPRXX at 2.19%.

With Vanguard Advantage accounts going away at the end of July, I plan to switch to Fidelity CMA for monthly bills, and just put enough into SPRXX at the beginning of the month to cover that month's bills. I've toyed with the idea of temporarily putting $100K into the CMA to open FZDXX with SEC yield 2.31%, but I'll lose at least a couple day's of interest with the transfers, so not sure it's worth it, since I generally won't have more than about $5K in the account at the beginning of the month.

However, the glitch in moving from the MM funds into the sweep fund gives me some pause.

At my marginal tax rates, Vanguard Treasury MM at 2.35% is a TEY of 2.64%, so much better than any Fidelity MM fund. I'd probably auto-roll Treasury bills if I wanted to hold more at Fidelity. That's what I've been doing with extra cash in my Fidelity IRAs.

SHV is interesting, but the price does fluctuate, so there's a little more risk than with a MM fund, and the yield is a bit lower than Vanguard Treasury MM fund.

Kevin
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BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Sun May 19, 2019 3:36 pm

montee4 wrote:
Sun May 19, 2019 12:15 pm
Where do you guys keep your emergency fund? Just in one of their Money Market Funds? Assuming these are safe from any losses?
Separate CMA all in FDLXX
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Sun May 19, 2019 3:37 pm

Kevin M wrote:
Sun May 19, 2019 3:23 pm
msi wrote:
Sun May 19, 2019 1:36 pm
montee4 wrote:
Sun May 19, 2019 12:15 pm
Where do you guys keep your emergency fund? Just in one of their Money Market Funds? Assuming these are safe from any losses?
SHV, a treasury bill ETF that trades commission-free at Fido.
Another option would be to auto-roll Treasuries, since Fidelity offers the auto-roll feature. You currently earn about 2.4% on 1-month to 6-month Treasuries, and if you need to sell early you won't take much of a haircut, although Schwab generally has better pricing for quantities under $150K-$300K face value. So about 20 basis points more than SPRXX at 2.19%.

With Vanguard Advantage accounts going away at the end of July, I plan to switch to Fidelity CMA for monthly bills, and just put enough into SPRXX at the beginning of the month to cover that month's bills. I've toyed with the idea of temporarily putting $100K into the CMA to open FZDXX with SEC yield 2.31%, but I'll lose at least a couple day's of interest with the transfers, so not sure it's worth it, since I generally won't have more than about $5K in the account at the beginning of the month.

However, the glitch in moving from the MM funds into the sweep fund gives me some pause.

At my marginal tax rates, Vanguard Treasury MM at 2.35% is a TEY of 2.64%, so much better than any Fidelity MM fund. I'd probably auto-roll Treasury bills if I wanted to hold more at Fidelity. That's what I've been doing with extra cash in my Fidelity IRAs.

SHV is interesting, but the price does fluctuate, so there's a little more risk than with a MM fund, and the yield is a bit lower than Vanguard Treasury MM fund.

Kevin
Don't forget the exempt state-taxes on SHV and auto-rolled t-bills, which could make it a lot better than an effective 20 bp above SPRXX.

I am super happy with CMA as my core checking/savings (combined) account now. Even if Vanguard Prime is higher yielding, my cash reserves is usually not much more if at all than my "checking" so getting the decent yield on everything more than makes up for it.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sun May 19, 2019 7:26 pm

MotoTrojan wrote:
Sun May 19, 2019 3:37 pm
Kevin M wrote:
Sun May 19, 2019 3:23 pm
Another option would be to auto-roll Treasuries, since Fidelity offers the auto-roll feature. You currently earn about 2.4% on 1-month to 6-month Treasuries, and if you need to sell early you won't take much of a haircut, although Schwab generally has better pricing for quantities under $150K-$300K face value. So about 20 basis points more than SPRXX at 2.19%.

<snip>
At my marginal tax rates, Vanguard Treasury MM at 2.35% is a TEY of 2.64%, so much better than any Fidelity MM fund. I'd probably auto-roll Treasury bills if I wanted to hold more at Fidelity. That's what I've been doing with extra cash in my Fidelity IRAs.
<snip>
Don't forget the exempt state-taxes on SHV and auto-rolled t-bills, which could make it a lot better than an effective 20 bp above SPRXX.
Of course. I mentioned that in terms of the higher Treasury MM TEY for me, but neglected to mention it for SHV and the T Bills. A rolling 1-month to 3-month T bill ladder adds about the expense ratio of 9 basis points compared to Vanguard Treasury MM, since that's basically what Treasury MM holds. SHV still not attractive compared to Treasury MM though.
I am super happy with CMA as my core checking/savings (combined) account now. Even if Vanguard Prime is higher yielding, my cash reserves is usually not much more if at all than my "checking" so getting the decent yield on everything more than makes up for it.
With the flattish/inverted yield curves, cash ain't so bad now, so I'm holding quite a bit more than a month of expenses in Treasury MM and short-term Treasuries. I'd put more into individual 6-month Treasuries, but have been accumulating cash in Treasury MM with the thought of opening FZDXX ($100K min) in the Fidelity CMA.

Even Vanguard Federal MM (the sweep fund at Vanguard) has a TEY for me of about 2.56%, so I would have preferred to stick with my Vanguard Advantage Account for paying monthly bills, but that won't be an option after July. I think the CMA will be the best choice for "checking" after that, so I'll start transitioning next month.

Kevin
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klaus14
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Re: Fidelity as a one stop shop

Post by klaus14 » Sun May 19, 2019 8:07 pm

sophie1 wrote:
Fri May 17, 2019 7:38 am
spammagnet wrote:
Sat May 11, 2019 10:06 pm
MarkerFM wrote:
Sat Apr 27, 2019 4:20 pm
... Over the Easter holiday weekend, when banks were open Good Friday but the stock market was closed, Fidelity suffered a glitch and the auto sweep feature didn't work. ...
I suffered that problem. The rep I spoke to had no explanation and I didn't know it was a generalized problem. I manually transferred some money to replete the CMA balance.

I just got a notice from a rarely-used store credit card that our automatic payment failed and we're past due. I couldn't fathom why that would be the case because the bank hasn't changed in years. After research I found that their payment occurred on the very day my CMA balance was negative.

Overall, though, I'm quite happy with the automated cash flow.
I am too, but that's a potentially very serious problem for the dual CMA/brokerage setup where you rely on overdrafts for every CMA payment. Did Fidelity offer any further explanation, or to reimburse costs to affected customers? Is this something that might occur regularly?

Sounds like backing up credit card autopayments to be a couple days early might be prudent, so that you have time to act before you get dinged for a late payment. Or, just pay credit cards direct from the brokerage rather than the CMA.
Once, CMA debited the amount from brokerage twice. Later corrected but if it was a large payment, could've created problems.
This is why I only use CMA for ATM withdrawals. Brokerage supports all other features (bill pay etc.)

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Mon May 20, 2019 5:40 am

frequentT wrote:
Sun May 19, 2019 3:13 pm

*Electronic check images are kept for 10 years

How do you access them? My experience is that paper checks that I write personally, images are available online, but bill pay checks, your "electronic check" ??? even if issued as a paper check never show up as images only as a line item "bill payment (cash)" with a name and amount, but no images. Nor are they included in my EOM statement.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Mon May 20, 2019 6:07 am

Kevin M wrote:
Sun May 19, 2019 7:26 pm
With the flattish/inverted yield curves, cash ain't so bad now, so I'm holding quite a bit more than a month of expenses in Treasury MM and short-term Treasuries. I'd put more into individual 6-month Treasuries, but have been accumulating cash in Treasury MM with the thought of opening FZDXX ($100K min) in the Fidelity CMA.
Not sure if you have $100k in the Fidelity brokerage account. If you do, one trick is that you can buy FZDXX in the brokerage account, then transfer in-kind say $5000 of FZDXX to the CMA. Fidelity lets you do that and you don't need to separately have $100k in CMA to start FZDXX.

I found this "trick" convenient because I started FZDXX in the CMA, then decided I wanted to use the brokerage account instead for cash management.
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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Mon May 20, 2019 4:58 pm

indexfundfan wrote:
Mon May 20, 2019 6:07 am
Kevin M wrote:
Sun May 19, 2019 7:26 pm
With the flattish/inverted yield curves, cash ain't so bad now, so I'm holding quite a bit more than a month of expenses in Treasury MM and short-term Treasuries. I'd put more into individual 6-month Treasuries, but have been accumulating cash in Treasury MM with the thought of opening FZDXX ($100K min) in the Fidelity CMA.
Not sure if you have $100k in the Fidelity brokerage account. If you do, one trick is that you can buy FZDXX in the brokerage account, then transfer in-kind say $5000 of FZDXX to the CMA. Fidelity lets you do that and you don't need to separately have $100k in CMA to start FZDXX.

I found this "trick" convenient because I started FZDXX in the CMA, then decided I wanted to use the brokerage account instead for cash management.
That's good to know. I have FZDXX is in an IRA, where the minimum is $10K, but the transfer in kind thing won't work with that. Or will it? I guess I could take a small distribution from the IRA if they will do it in kind into a taxable account.

I do have more than $100K in individual bonds (mostly munis) in a taxable Fidelity brokerage account. Maybe as they mature, I'll start rolling the proceeds into short-term Treasuries at Fidelity until I get to the $100K mark, at which point I could buy FZDXX.

I just opened up a second brokerage account at Fidelity, since the discussion here has me thinking that using a brokerage account for cash management makes more sense than using a CMA, mainly because of the higher-yielding options for the core position. The Fidelity government money market choices at 2.07% or 2.09%, with about 56% of income from US government obligations in 2018, come to a TEY for me of about 2.21% or 2.23%, which largely mitigates the desire to bother with moving cash into a different money market account.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Mon May 20, 2019 6:16 pm

Kevin M wrote:
Mon May 20, 2019 4:58 pm
That's good to know. I have FZDXX is in an IRA, where the minimum is $10K, but the transfer in kind thing won't work with that. Or will it? I guess I could take a small distribution from the IRA if they will do it in kind into a taxable account.
It would be interesting if Fidelity allows a distribution in-kind of $1 in FZDXX. :-)
Kevin M wrote:
Mon May 20, 2019 4:58 pm
I just opened up a second brokerage account at Fidelity, since the discussion here has me thinking that using a brokerage account for cash management makes more sense than using a CMA, mainly because of the higher-yielding options for the core position. The Fidelity government money market choices at 2.07% or 2.09%, with about 56% of income from US government obligations in 2018, come to a TEY for me of about 2.21% or 2.23%, which largely mitigates the desire to bother with moving cash into a different money market account.
I move my cash management to the brokerage account with SPAXX as the sweep. The CMA is good for free ATM access whereas the brokerage account has better sweep options.
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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Sat May 25, 2019 2:28 pm

How does check writing & ATM withdrawals work when you have both brokerage and CMA account.

Say, brokerage account has balance of $1,000 in SPAXX or default core account
Say, CMA account has balance of $0, with overdraft set to brokerage account sweep

Now I write a check using my CMA account for $100, will it sweep that from the brokerage account correctly without incurring any fees?

I also assume when I visit the ATM using the CMA accounts' card, it will withdraw from sweep account correctly. Is that correct assumption?

snowman
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Re: Fidelity as a one stop shop

Post by snowman » Sat May 25, 2019 2:38 pm

walletless wrote:
Sat May 25, 2019 2:28 pm
How does check writing & ATM withdrawals work when you have both brokerage and CMA account.

Say, brokerage account has balance of $1,000 in SPAXX or default core account
Say, CMA account has balance of $0, with overdraft set to brokerage account sweep

Now I write a check using my CMA account for $100, will it sweep that from the brokerage account correctly without incurring any fees?

I also assume when I visit the ATM using the CMA accounts' card, it will withdraw from sweep account correctly. Is that correct assumption?
Yes to both. However, if you are concerned about fraud, you may not want to use overdraft. Just keep 0 or small amount of money in CMA, and transfer instantly from brokerage if you need to use ATM or write infrequent check. That way, if your CMA becomes compromised, it's not pulling your money out of brokerage account via overdraft.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Sat May 25, 2019 2:42 pm

snowman wrote:
Sat May 25, 2019 2:38 pm
walletless wrote:
Sat May 25, 2019 2:28 pm
How does check writing & ATM withdrawals work when you have both brokerage and CMA account.

Say, brokerage account has balance of $1,000 in SPAXX or default core account
Say, CMA account has balance of $0, with overdraft set to brokerage account sweep

Now I write a check using my CMA account for $100, will it sweep that from the brokerage account correctly without incurring any fees?

I also assume when I visit the ATM using the CMA accounts' card, it will withdraw from sweep account correctly. Is that correct assumption?
Yes to both. However, if you are concerned about fraud, you may not want to use overdraft. Just keep 0 or small amount of money in CMA, and transfer instantly from brokerage if you need to use ATM or write infrequent check. That way, if your CMA becomes compromised, it's not pulling your money out of brokerage account via overdraft.
Thanks, the only thing in my brokerage account is ~$1,000 in sweep account, so I should be ok with that. I have a separate brokerage account for my other investments which is not linked for overdraft to CMA.

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Re: Fidelity as a one stop shop

Post by MarkerFM » Sat May 25, 2019 3:05 pm

snowman wrote:
Sat May 25, 2019 2:38 pm
walletless wrote:
Sat May 25, 2019 2:28 pm
How does check writing & ATM withdrawals work when you have both brokerage and CMA account.

Say, brokerage account has balance of $1,000 in SPAXX or default core account
Say, CMA account has balance of $0, with overdraft set to brokerage account sweep

Now I write a check using my CMA account for $100, will it sweep that from the brokerage account correctly without incurring any fees?

I also assume when I visit the ATM using the CMA accounts' card, it will withdraw from sweep account correctly. Is that correct assumption?
Yes to both. However, if you are concerned about fraud, you may not want to use overdraft. Just keep 0 or small amount of money in CMA, and transfer instantly from brokerage if you need to use ATM or write infrequent check. That way, if your CMA becomes compromised, it's not pulling your money out of brokerage account via overdraft.
I had a long conversation about this with my Fidelity Private Client Group advisor, who I think knows what he is talking about (not all Fidelity people do). I have a CMA that I use for ACH, billpay, and the occasional check. I also have overdraft enabled from my brokerage account. I have potentially many millions at risk in that account. He assured me that with Fidelity's fraud detection systems, there is no real risk of losing money to fraud.

GeraniumLover
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Re: Fidelity as a one stop shop

Post by GeraniumLover » Wed May 29, 2019 11:00 am

There are two features Capital One 360 has that I would really love Fidelity to implement:

(1) You can click on a check deposit transaction to view the image of the check that was deposited
(2) You can enter a memo/description for a transfer transaction

These features make it much easier to peruse and make sense of the activity history.

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Re: Fidelity as a one stop shop

Post by aj76er » Wed May 29, 2019 11:32 am

GeraniumLover wrote:
Wed May 29, 2019 11:00 am
There are two features Capital One 360 has that I would really love Fidelity to implement:

(1) You can click on a check deposit transaction to view the image of the check that was deposited
(2) You can enter a memo/description for a transfer transaction

These features make it much easier to peruse and make sense of the activity history.
Perhaps you should suggest this to Fidelity? Those both sounds like great features.
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Re: Fidelity as a one stop shop

Post by mervinj7 » Wed May 29, 2019 11:41 am

MarkerFM wrote:
Sat May 25, 2019 3:05 pm
I had a long conversation about this with my Fidelity Private Client Group advisor, who I think knows what he is talking about (not all Fidelity people do). I have a CMA that I use for ACH, billpay, and the occasional check. I also have overdraft enabled from my brokerage account. I have potentially many millions at risk in that account. He assured me that with Fidelity's fraud detection systems, there is no real risk of losing money to fraud.
Too much risk for my blood. Why not open a second brokerage account and use that for overdraft? You can keep just $50k/$100k in it instead of many millions.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Wed May 29, 2019 3:40 pm

mervinj7 wrote:
Wed May 29, 2019 11:41 am
MarkerFM wrote:
Sat May 25, 2019 3:05 pm
I had a long conversation about this with my Fidelity Private Client Group advisor, who I think knows what he is talking about (not all Fidelity people do). I have a CMA that I use for ACH, billpay, and the occasional check. I also have overdraft enabled from my brokerage account. I have potentially many millions at risk in that account. He assured me that with Fidelity's fraud detection systems, there is no real risk of losing money to fraud.
Too much risk for my blood. Why not open a second brokerage account and use that for overdraft? You can keep just $50k/$100k in it instead of many millions.
I opened a second brokerage for cash management. I made it a margin account, and bought $10K of 6-month Treasuries on auto-roll, so the margin serves as overdraft protection. I could have bought less, but didn't want to mess around with quantity less than 10. I decided not to get a debit/ATM card for this account, to reduce the risk exposure, although with Fidelity Premium Services, ATM fees are reimbursed (just like with a CMA).

I have a debit/ATM card for the CMA I opened, and probably the only thing I will use that account for is ATM withdrawals, and I probably won't even use it much for that, as I have other sources for ATM withdrawals. As far as I know, no other account serves as overdraft for this--how do I check that (without calling Fidelity)?

Kevin
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Re: Fidelity as a one stop shop

Post by indexfundfan » Wed May 29, 2019 3:47 pm

Kevin M wrote:
Wed May 29, 2019 3:40 pm
I opened a second brokerage for cash management. I made it a margin account, and bought $10K of 6-month Treasuries on auto-roll, so the margin serves as overdraft protection. I could have bought less, but didn't want to mess around with quantity less than 10. I decided not to get a debit/ATM card for this account, to reduce the risk exposure, although with Fidelity Premium Services, ATM fees are reimbursed (just like with a CMA).

I have a debit/ATM card for the CMA I opened, and probably the only thing I will use that account for is ATM withdrawals, and I probably won't even use it much for that, as I have other sources for ATM withdrawals. As far as I know, no other account serves as overdraft for this--how do I check that (without calling Fidelity)?

Kevin
I am doing something similar. I use the brokerage account for my day-to-day checking. The money is primarily in FZDXX. I also hold 200 shares (about $10k) of ICSH (an ultrashort bond ETF) for overdraft protection (from margin) in the brokerage account.

I have ATM cards from the CMA account, in which I keep a zero balance.
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montee4
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Re: Fidelity as a one stop shop

Post by montee4 » Sat Jun 01, 2019 1:37 pm

Anyone using a good check register to work with the Brokerage account, other than Quicken? I am wanting to get a way from Quicken but that is the only register I know of where I can enter my transactions as I pay bills then ultimately have it reconciled via a download from my account. Thanks for any recommendations!

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Re: Fidelity as a one stop shop

Post by TimeRunner » Sat Jun 01, 2019 3:34 pm

montee4 wrote:
Sat Jun 01, 2019 1:37 pm
Anyone using a good check register to work with the Brokerage account, other than Quicken? I am wanting to get a way from Quicken but that is the only register I know of where I can enter my transactions as I pay bills then ultimately have it reconciled via a download from my account. Thanks for any recommendations!
"How do I download my account information from Fidelity.com to Microsoft Excel®?
By selecting the Download button on the History page, you can export data from your Account History on Fidelity.com directly into Microsoft Excel® in CSV (comma-separated values) format. This will export your account transaction details. If you have a Fidelity® Cash Management Account, you can filter for specific types of transactions." (https://www.fidelity.com/customer-servi ... nformation )
...
MoneyDance (and others) will import from CSV format or do direct connect like Quicken.
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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Jun 01, 2019 3:47 pm

montee4 wrote:
Sat Jun 01, 2019 1:37 pm
Anyone using a good check register to work with the Brokerage account, other than Quicken? I am wanting to get a way from Quicken but that is the only register I know of where I can enter my transactions as I pay bills then ultimately have it reconciled via a download from my account. Thanks for any recommendations!
A spreadsheet works fine. If you're entering your transactions manually anyway, there's really no need to download from Fidelity to reconcile. You can use a simple formula to calculate running balance based on debits and credits (previous balance minus debits plus credits), and this balance will reconcile with the balance you see at Fidelity unless there's a mistake somewhere.

I enter my payments and deposits for the next month into my spreadsheet, so the running balance is calculated in advance. I just periodically check to ensure that my spreadsheet balance matches the bank or brokerage fund balance.

I've been doing this for years, first with Ally, then with Vanguard Advantage, and starting this month with Fidelity.

I download holdings from Vanguard, Fidelity and Schwab to update my portfolio spreadsheets, but have never found the need to download transactions related to my monthly cash management. I stopped using Quicken many, many years ago, after getting to really hate it.

Kevin
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Re: Fidelity as a one stop shop

Post by gobigorgohome » Sun Jun 02, 2019 5:54 pm

If this has been asked before then disregard. But, can you have your brokerage account with margin set up to be an overdraft coverage for more than one account? or only one account? Thanks.

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Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 10:39 am

[Thread merged into here, see below (next page). --admin LadyGeek]

I've had a fidelity account for a while now along with my vanguard one. But Fido sent me some info on a cash management account, more or less touting it as a checking account. They lured me in to opening one because of the no fees for atm use (well they just reimburse you).

But now that it's open and I log into fido - it looks like I can buy mutual funds within the checking account? Anyone have experience with this...is this true? If I accidentally overdraft the account will it trigger a sell order to cover the funds that day? The info to get me to open the account didn't say anything about trading capabilities within it.

snowman
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by snowman » Tue Jun 04, 2019 10:46 am

There have been many threads on the subject, here is the more recent one:

viewtopic.php?f=2&t=266538

Read through it and you will understand many different capabilities Fidelity CMA offers. Yes, it is a brokerage account mascaraing as checking account.

MotoTrojan
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MotoTrojan » Tue Jun 04, 2019 10:53 am

My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.

jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 11:23 am

Thanks for the reference links...I didn't see this in the other threads, but if you use the CMA as your checking and you hold no cash, does it only auto sell if you use a money market fund, I didn't see anyone saying they held like a total index fund.

arf30
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by arf30 » Tue Jun 04, 2019 11:28 am

It only sells money market, and that can be turned off.

MotoTrojan
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MotoTrojan » Tue Jun 04, 2019 11:29 am

jbsmith05 wrote:
Tue Jun 04, 2019 11:23 am
Thanks for the reference links...I didn't see this in the other threads, but if you use the CMA as your checking and you hold no cash, does it only auto sell if you use a money market fund, I didn't see anyone saying they held like a total index fund.
Only MM funds but some still keep separate linked brokerages to me safe (especially if sharing account info for direct deposit).

This auto draft isn’t default, need to setup in cash manager.

agbp
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by agbp » Tue Jun 04, 2019 11:42 am

snowman wrote:
Tue Jun 04, 2019 10:46 am
... Read through it and you will understand many different capabilities Fidelity CMA offers. Yes, it is a brokerage account mascaraing as checking account.
Am I the only one picturing a brokerage account heavily made up with lots of mascara? (Probably...) :P

jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 11:50 am

MotoTrojan wrote:
Tue Jun 04, 2019 11:29 am
jbsmith05 wrote:
Tue Jun 04, 2019 11:23 am
Thanks for the reference links...I didn't see this in the other threads, but if you use the CMA as your checking and you hold no cash, does it only auto sell if you use a money market fund, I didn't see anyone saying they held like a total index fund.
Only MM funds but some still keep separate linked brokerages to me safe (especially if sharing account info for direct deposit).

This auto draft isn’t default, need to setup in cash manager.
Yep just did this, created a new brokerage with the intention of direct depositing to the core account only. Using the cash manager I've set it to keep a 500 minimum balance (as I think this is the only way to get cash from an atm) by drafting from the newly created brokerage. I'll leave my other brokerage for actual investing.

jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 12:06 pm

MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?

MotoTrojan
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MotoTrojan » Tue Jun 04, 2019 12:10 pm

jbsmith05 wrote:
Tue Jun 04, 2019 12:06 pm
MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?
I've used random store type ATMs as well as a Wells Fargo ATM with $0 no problem.

mhalley
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by mhalley » Tue Jun 04, 2019 12:19 pm

I just started mine and the only thing I don’t like about it is if you setup a new billpay payee by searching for a company, it doesn’t show you the actual address it is going to. I am a little concerned I might pick the wrong one and the payment will not go to the right place. Otherwise I like it so far.

jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 12:25 pm

mhalley wrote:
Tue Jun 04, 2019 12:19 pm
I just started mine and the only thing I don’t like about it is if you setup a new billpay payee by searching for a company, it doesn’t show you the actual address it is going to. I am a little concerned I might pick the wrong one and the payment will not go to the right place. Otherwise I like it so far.
Bank of America does the same thing...this typically means they have a relationship with that biller and it's sent electronically. I've never had issues with this with Bank of America. BofA only shows the address if they mail an actual check.

jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Tue Jun 04, 2019 12:27 pm

MotoTrojan wrote:
Tue Jun 04, 2019 12:10 pm
jbsmith05 wrote:
Tue Jun 04, 2019 12:06 pm
MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?
I've used random store type ATMs as well as a Wells Fargo ATM with $0 no problem.

I presume you can bill pay from the CMA account too without any money in it or no? Or can you bill pay from the dedicated "savings" brokerage and it'd auto-sell the MM fund to cover the bill?

MotoTrojan
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MotoTrojan » Tue Jun 04, 2019 12:54 pm

jbsmith05 wrote:
Tue Jun 04, 2019 12:27 pm
MotoTrojan wrote:
Tue Jun 04, 2019 12:10 pm
jbsmith05 wrote:
Tue Jun 04, 2019 12:06 pm
MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?
I've used random store type ATMs as well as a Wells Fargo ATM with $0 no problem.

I presume you can bill pay from the CMA account too without any money in it or no? Or can you bill pay from the dedicated "savings" brokerage and it'd auto-sell the MM fund to cover the bill?
I don't use any special bill pay systems so not sure there. For my credit cards and utility I just use the CMA's routing/account number as if it were a regular checking account and it pulls MM from the Brokerage through the CMA no problem. I have the Brokerage routing/account setup at my banks too so I can transfer directly into it. Basically my CMA NEVER has >$0.

bck63
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by bck63 » Tue Jun 04, 2019 1:01 pm

jbsmith05 wrote:
Tue Jun 04, 2019 10:39 am
I've had a fidelity account for a while now along with my vanguard one. But Fido sent me some info on a cash management account, more or less touting it as a checking account. They lured me in to opening one because of the no fees for atm use (well they just reimburse you).

But now that it's open and I log into fido - it looks like I can buy mutual funds within the checking account? Anyone have experience with this...is this true? If I accidentally overdraft the account will it trigger a sell order to cover the funds that day? The info to get me to open the account didn't say anything about trading capabilities within it.
I use the Fidelity CMA and love it. I keep no money in the FDIC account. I purchase a money market fund and use that for cash management -- paying bills. Fidelity will only draw on MMFs, not other mutual funds. In addition to the MMF, we do own some short-term bond funds for expenses that we anticipate will be in the next 2-3 years.

I have another brokerage account for stocks and bonds. Actually, one for each.

Fidelity makes cash management really easy and it has helped me ramp up my personal finances, saving and investing. Good luck with it.

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Re: Fidelity Cash Management Account - Anyone Use it?

Post by Kevin M » Tue Jun 04, 2019 1:01 pm

MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
<snip>I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX).
I found that SPAXX actually can have higher taxable-equivalent yield (TEY), or if prefer, after-tax yield (ATY), than SPRXX if your state income tax rate is high enough. At my marginal tax rates of 8% state and 27% fed (fed has a relatively small impact), 7-day compound TEY of SPAXX is 2.22%, compared to 2.19% for SPRXX. This is based on about 56% of income from US government obligations in 2018 (meets the 50% CA minimum).

I could do a bit better by exchanging to FDLXX (Treasury only) due to 100% of income from US government obligations, which for me provides a compound TEY of 2.28%, but as I generally won't be holding more than about $5K in this account, I probably won't bother for the extra $2 or so per year after tax at current yields. FDLXX cannot be used as your brokerage main core fund, so it requires a manual exchange.

If I did want to bother, FDLXX is close enough to FZDXX (2.32% compound) that I wouldn't bother with the $100K minimum to open FZDXX in a taxable account. At current yields, FZDXX earns about $1 more than FDLXX per year on $5K after tax.

Kevin
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bck63
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by bck63 » Tue Jun 04, 2019 1:06 pm

jbsmith05 wrote:
Tue Jun 04, 2019 12:06 pm
MotoTrojan wrote:
Tue Jun 04, 2019 10:53 am
My core bank now. I tied it to a brokerage (nothing but cash in it) so my direct deposits immediately go into SPAXX (can later buy SPRXX). My CMA auto drafts using cash manager so it’s always at $0. If you deposit into CMA then it’ll earn less interest until you manually buy a money market.

Love it. Also living in a major city it’s pretty convenient to use any ATM I want (random local market) and get reimbursed the hefty fee.
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?
It will pull from a money market fund if there's nothing in the FDIC account. You can see how much you can withdraw (subject to ATM limits) on the account summary page. It says "cash available to withdraw."

HomeStretch
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by HomeStretch » Tue Jun 04, 2019 1:12 pm

MotoTrojan wrote:
Tue Jun 04, 2019 12:54 pm
I have the Brokerage routing/account setup at my banks too so I can transfer directly into it.
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.

MotoTrojan
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MotoTrojan » Tue Jun 04, 2019 1:17 pm

HomeStretch wrote:
Tue Jun 04, 2019 1:12 pm
MotoTrojan wrote:
Tue Jun 04, 2019 12:54 pm
I have the Brokerage routing/account setup at my banks too so I can transfer directly into it.
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.
I haven't dug deep into it but now I push/pull from the other bank, not Fidelity. Seems faster, or at-least it will give me an ETA (Wells, Ally).

mhalley
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by mhalley » Tue Jun 04, 2019 1:20 pm

As a general rule, money is available faster if it is pushed. If it is pulled, the receiver must verify the funds are legit before making them available.

snowman
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by snowman » Tue Jun 04, 2019 1:25 pm

HomeStretch wrote:
Tue Jun 04, 2019 1:12 pm
MotoTrojan wrote:
Tue Jun 04, 2019 12:54 pm
I have the Brokerage routing/account setup at my banks too so I can transfer directly into it.
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.
Push will always be faster than pull, that goes for any bank and I have many of them. With some banks, the difference is small (1-2 days), with others it could be 4-5 days. It really depends on financial institution.

As far as Fidelity goes, push from CMA to another bank is always available next business day. Pull from CMA from another bank takes 3-5 business days.

bck63
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by bck63 » Tue Jun 04, 2019 1:44 pm

snowman wrote:
Tue Jun 04, 2019 1:25 pm
HomeStretch wrote:
Tue Jun 04, 2019 1:12 pm
MotoTrojan wrote:
Tue Jun 04, 2019 12:54 pm
I have the Brokerage routing/account setup at my banks too so I can transfer directly into it.
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.
Push will always be faster than pull, that goes for any bank and I have many of them. With some banks, the difference is small (1-2 days), with others it could be 4-5 days. It really depends on financial institution.

As far as Fidelity goes, push from CMA to another bank is always available next business day. Pull from CMA from another bank takes 3-5 business days.
Yes, 3-5 business days to be available to withdraw as cash. But when I pull, the money is available for trading immediately.

HomeStretch
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by HomeStretch » Tue Jun 04, 2019 1:47 pm

snowman wrote:
Tue Jun 04, 2019 1:25 pm
HomeStretch wrote:
Tue Jun 04, 2019 1:12 pm
MotoTrojan wrote:
Tue Jun 04, 2019 12:54 pm
I have the Brokerage routing/account setup at my banks too so I can transfer directly into it.
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.
Push will always be faster than pull, that goes for any bank and I have many of them. With some banks, the difference is small (1-2 days), with others it could be 4-5 days. It really depends on financial institution.

As far as Fidelity goes, push from CMA to another bank is always available next business day. Pull from CMA from another bank takes 3-5 business days.
Thanks to both for the useful information!

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Re: Fidelity as a one stop shop

Post by LadyGeek » Tue Jun 04, 2019 9:28 pm

I merged jbsmith05's thread into the on-going discussion.
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jbsmith05
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by jbsmith05 » Wed Jun 05, 2019 5:21 am

bck63 wrote:
Tue Jun 04, 2019 1:06 pm
It will pull from a money market fund if there's nothing in the FDIC account. You can see how much you can withdraw (subject to ATM limits) on the account summary page. It says "cash available to withdraw."

Maybe my accounts need to settle as there's money being moved from one account to the other but the CMA account has $0 in it, nothing in the FDIC sweep or other MMF. The linked overdraft brokerage account does have money in it's core position of SPAXX...but the CMA account summary page still show's $0 available to withdraw.

The linked overdraft brokerage page show's how much is available to withdraw however.

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